SEC suspends Jia Financing’s license

​The Securities and Exchange Commission (SEC) has suspended the certificate of authority of Jia Financing Inc. to operate as a financing company for 60 days for operating an illegal website and for failure to disclose new loan products and services.

In an order dated July 10, the SEC Financing and Lending Companies Department (FinLend) ordered Jia Financing to take down its website, jia.ph, for being in violation of SEC Memorandum Circular No. 10, Series of 2021 (MC 10), which imposed a moratorium on new online lending platforms on November 5, 2021.

Under MC 10, OLPs are defined as mobile lending applications, websites, and other fintech-enabled programs or systems where the products and services of lending and financing companies are made available.

FinLend also noted that while Jia Financing has submitted a business plan, it failed to disclose that it would operate the website and lend amounts ranging from USD50,000 to USD200,000 per client, in violation of SEC Memorandum Circular No. 3, Series of 2022 (MC 3).

MC 3 requires all lending companies and financing companies to submit a business plan indicating the company’s loan products and services as well as the applicable pricing parameter.

Failure to comply with the memorandum circulars constitute a violation of the implementing rules and regulations of Republic Act No. 8556, or the Financing Company Act.

“The non-disclosure of these material changes in its operations warrants the suspension of its certificate of authority,” the order read.
Accordingly, FinLenD imposed a penalty of P10,000 on the company and ordered the removal of its website.


You may also read an updated article:
​SEC Clears Jia Financing; Company Resumes Full SME Lending Operations